The Pakistan Stock Exchange (PSX) experienced a significant setback on Thursday as the benchmark KSE-100 Index shed nearly 2,000 points due to persistent selling pressure and heightened investor concerns. The index closed at 110,423 points, marking a sharp decline of 1.8% from the previous trading session.
This drop comes after a volatile week in which the KSE-100 Index initially surged by an impressive 4,411 points on Monday, only to be followed by a 1,509-point decrease on Tuesday. The continued profit-taking by investors has intensified the downward trend, erasing much of the earlier gains.
According to a market analysis by Topline Securities, the selling pressure is largely attributable to increased leverage and the expiry of December contracts. The brokerage firm also highlighted the negative impact of escalating border security concerns, which have weighed heavily on investor sentiment.
Among the major contributors to the market downturn were some of the top-performing stocks, including Fauji Fertilizer Company (FFC), Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Mari Petroleum (MARI), and Lucky Cement (LUCK). These five stocks alone were responsible for a staggering 996-point drop in the index, underscoring the breadth of the sell-off.
Trading activity also saw a notable decline, with the total volume of shares traded falling to 628.02 million from 880.59 million in the previous session. The total value of traded shares decreased significantly as well, amounting to Rs. 33.58 billion compared to Rs. 54.45 billion on the last trading day.
Out of the 450 companies that participated in Thursday’s trading, 113 recorded gains, while 284 faced losses. The share prices of 53 companies remained unchanged, reflecting a cautious and uncertain market environment.
The PSX’s recent performance underscores the challenges faced by the local bourse, which has been grappling with external and internal pressures. Analysts note that while the market showed resilience earlier in the week, the current downturn highlights the fragility of investor confidence amid geopolitical tensions and macroeconomic uncertainties.
Despite the sharp decline, market experts remain cautiously optimistic about a potential rebound, citing attractive valuations and underlying economic reforms as positive factors that could restore stability. However, they stress the importance of resolving ongoing security concerns and maintaining consistent policy measures to sustain investor confidence in the long term.
The KSE-100’s performance remains a key barometer of Pakistan’s economic outlook, and its fluctuations reflect both the opportunities and challenges within the broader financial landscape. As the year draws to a close, stakeholders will be closely monitoring market developments to gauge the potential trajectory for early 2025.